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Biodiversity, Climate Change, and Adaptation Public Disclosure Authorized Biodiversity, The World Bank 1818 H Street, NW Washington, DC 20433 USA Climate Change, Tel: 202-473-1000 Fax: 202-477-0565 Internet: www.worldbank.org/ biodiversity and Adaptation Nature-Based Solutions from Public Disclosure Authorized the World Bank Portfolio 46726 Public Disclosure Authorized Public Disclosure Authorized Biodiversity, Climate Change and Adaptation Nature-Based Solutions from the World Bank Portfolio © 2008 The International Bank for Reconstruction and Development / THE WORLD BANK 1818 H Street, NW Washington, DC 20433 USA September 2008 All rights reserved. This report was prepared by Kathy MacKinnon, Claudia Sobrevila and Valerie Hickey (Biodiversity Team, ENV) with substantial material on adaptation in LAC from Walter Vergara, and contributions from Marjory-Anne Bromhead, Christophe Crepin, Karsten Ferrugiel and Gayatri Kanungo (AFR); Emilia Battaglini, Maurizio Gudagni and Karin Shepardson (ECA); Joe Leitmann and Tony Whitten (EAP); Enos Esikuri, Marea Hatziolos, Astrid Hillers and Klas Sander (ENV); Gunars Platais, Adriana Moreira, Juan Pablo Ruiz, Walter Vergara and Jocelyne Albert (LAC); Kanta Kumari Rigaud (MENA) and Richard Damania and Malcolm Jansen (SAR). Marieke van der Zon, Grace Aguilar, Perpetual Boateng, Marielena Guttierez and Valerie Hickey updated the biodiversity database and Valerie Hickey undertook the data analysis. Jim Cantrell was responsible for the design and layout. Thanks are due to the GEF regional coordinators and to Steve Gorman and the GEF Anchor team for support and advice with regard to the GEF portfolios. This paper is part of an ongoing review of the biodiversity portfolio of the World Bank Group and a contribution to Bank work on climate change and adaptation. It is a work in progress and has not been formally cleared by Bank management. This publication, and other publications about the Bank’s work on biodiversity, are available online at www.worldbank.org/biodiversity. Design: Jim Cantrell (ENV) Cover image: Hippos at sunset, Zambia: Kirk Hamilton. All images in text: Kirk Hamilton, Kathy MacKinnon, or Claudia Sobrevila (ENV) Note: All dollars are U.S. dollars. Contents CHAPTERS 1 The Bank’s Biodiversity Portfolio 1 Introduction 1 Methods 2 Investment Trends 5 2 Biodiversity, Climate Change, and Local Livelihoods: Challenges and Opportunities 11 Impacts of Climate Change 11 Why Biodiversity Matters in a Changing World 16 Protected Areas: Meeting the Challenges of Conservation and Climate Change 17 Corridors and Connectivity 18 Managing Marine Resources 20 Valuing Ecosystem Services 21 3 Mitigating Climate Change: The Role of Biodiversity 26 Afforestation and Reforestation 26 Conserving Carbon Stores 27 Reducing Deforestation 27 Maintaining Peat Lands, Marshes, and Wetlands 29 Restoring Grasslands 30 Improving Ecosystem Services 30 Protecting Coral Reefs 31 Investing in Alternative Energy 33 New Partnerships to Address Biodiversity and Climate Change 34 Innovative Financing for Carbon and Biodiversity 36 4 Adapting to Climate Change: The Role of Biodiversity 39 Maintaining and Restoring Native Ecosystems 39 Landscape Connectivity 40 Adaptation in Agricultural Landscapes 41 Adaptation in Marine and Coastal Areas 42 Reducing Vulnerability 43 Adopting Indigenous Knowledge to Adapt to Climate Change 45 — iii — Biodiversity, Climate Change and Adaptation: Nature-based solutions from the World Bank Portfolio 5 Biodiversity Conservation and Food, Water and Livelihood 51 Security: Emerging Issues Agriculture, Climate Change, and Biodiversity 51 Agriculture and Food Security 53 Invasive Alien Species 55 Biofuels for Renewable Energy 57 Sustainable Land Management 59 Water Services 61 Looking Forward: The Strategic Framework for Climate Change and Development 63 Bibliography 65 ANNEX 1 The World Bank Biodiversity Portfolio 67 TABLES 1.1 Total Biodiversity Investments by Year and Funding Source (million USD) 5 1.2 Total Biodiversity Investments by Region 7 1.3 Regional Breakdowns of Biodiversity Investments by Funder (million USD) 8 2.1 Six Climate Threats, and the 12 Countries Most at Risk from Each 11 2.2 Adaptation Activities in the Latin America Region 15 4.1 Reducing the Environmental Impacts of Infrastructure Projects to Protect Carbon Sinks and Biodiversity 47 5.1 Known Invasive Species Listed in Different Countries as Suitable for Biofuel Production 58 BOXES 1.1 Innovative Funds that Leverage Biodiversity Investments for Carbon Outcomes 3 2.1 Linking Biodiversity and Climate Change: Permafrost Melt and Biodiversity Loss in Hövsgöl National Park, Mongolia 12 2.2 Mainstreaming Conservation in the Cape Floristic Region 15 2.3 Richtersveld Community Biodiversity Conservation 16 2.4 Amazon Rainforest Protected Areas System (ARPA): A Storehouse for Carbon and Biodiversity 18 2.5 Central Asia: Where the Mountains Reach the Sky 19 2.6 Global Tiger Initiative: An Umbrella Species for Conservation 20 2.7 Marine Protected Areas, Fish Populations and Climate Change 21 2.8 COREMAP: Coral Reef Rehabilitation and Management in Indonesia 22 2.9 Tajikistan Community Watershed Project: Improving Management in Mountain Ecosystems 23 2.10 Valuing Ecosystem Services in Costa Rica 23 3.1 Reforestation under the BioCarbon Fund 27 3.2 Forest Conservation in Aceh, Indonesia 28 3.3 Wetlands, Livelihoods and Climate Change in the Nile Basin 29 3.4 Trinidad and Tobago: Nariva Wetland Restoration and Carbon Offsets 30 3.5 Safeguarding Grasslands to Capture Carbon: Lessons from China 31 3.6 Jordan: Integrated Ecosystem Management in the Jordan Rift Valley 32 3.7 Payments for Environmental Services to Protect Biodiversity and Carbon in Agricultural Landscapes 32 3.8 Addressing the Impacts of Climate Change on Ocean Ecosystems and Coastal Communities 33 3.9 Nakai Nam Theun: Forest Conservation to Protect a Hydropower Investment in Lao PDR 34 3.10 Can Carbon Markets Save the Sumatran Tigers and Elephants? 35 4.1 Studying the Economics of Adaptation 38 4.2 Adaptation in the Caribbean 38 4.3 Colombia: Biodiversity in the Andes 40 4.4 Rebuilding Resilience in Wetland Ecosystems 41 4.5 Biological Corridors in a Changing World 42 — iv — The Bank’s Biodiversity Portfolio 4.6 Adaptation to Climate Change Using Agrobiodiversity Resources in the Rainfed Highlands of Yemen 43 4.7 Managing Marine and Coastal Resources 44 4.8 Protecting Karst and Cave Ecosystems in Croatia 45 4.9 Protecting Natural Forests for Flood Control 46 4.10 Measures to Address Climate Change in the Salinas and Aguada Blanca National Reserve in Peru 48 4.11 Using Land Tenure to Facilitate Greater Adaptation to Climate Change 49 5.1 Downstream Benefits from Forest Conservation in Madagascar 52 5.2 Supporting Climate Risk Management in Africa 53 5.3 Bank Studies and Projects related to Climate Change and Agriculture and Natural Resource Management 54 5.4 The Global Invasive Species Programme (GISP) 56 5.5 The Inter-American Biodiversity Information Network (IABIN) 57 5.6 Biofuels—Too Much of a Good Thing? 60 5.7 Conserving Biodiversity through Sustainable Land Management in India 61 5.8 Conservation Farming in Practice in South Africa 62 5.9 Protected Areas as Water Towers 63 FIGURES 1.1 Annual Total Biodiversity Investments including Co-financing (million USD) 6 1.2 Total Biodiversity Investments by Funding Source, 1988—2008 6 1.3 Annual Biodiversity Investments - Bank investments and co-financing (million USD) 7 1.4 Bank Biodiversity Investments by Funding Source 7 1.5 Total Biodiversity Investments by Region (million USD) 7 1.6 Total Co-financing for Biodiversity Projects in Each Region (million USD) 9 1.7 Percentage of Regional Co-financing 9 1.8 Ratio of Co-financing to Bank Investments in Each Region (million USD) 9 3.1 Likely Changes to Earth Systems depending on Mitigation Activities Undertaken 25 — v — 1 The Bank’s Biodiversity Portfolio and industry. Genetic diversity provides the basis for Introduction new breeding programs, improved crops, enhanced agricultural production, and food security. Forests, limate change is a serious environmental grasslands, freshwater, and marine and other natural challenge that could undermine the drive ecosystems provide a range of services, often not for sustainable development. Since the recognized in national economic accounts but vital to Cindustrial revolution, the mean surface temperature human welfare: regulating water flows, flood control, of Earth has increased an average of 1° Celsius per pollination, decontamination, carbon sequestration, century due to the accumulation of greenhouse gases biodiversity conservation, and nutrient and hydrological in the atmosphere. Furthermore, most of this change cycling. Sound ecosystem management provides has occurred in the past 30 to 40 years, and the rate countless streams of benefits to, and opportunities for, of increase is accelerating, with significant impacts human societies, while also supporting the web of life. both at a global scale and at local and regional levels. Biodiversity conservation contributes to environmental While it remains important to reduce greenhouse gas sustainability, a critical Millennium Development Goal emissions and reverse climate change in the long run, (MDG) and a central pillar of World Bank assistance. many of the impacts of climate change are already in evidence. As a result, governments, communities, and The Millennium Ecosystem Assessment showed that civil society are increasingly concerned with anticipating over the past 50 years human activities have changed the future effects
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